AUD/USD analysis: still unable to find direction

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7567

RBA meeting next Tuesday to offer little new. Chinese trade balance more relevant this week.
Aussie to remain more sensitive to market's sentiment and equities woes.

The AUD/USD pair closed at 0.7567, little changed for a fifth consecutive week. The pai r trimmed all of its intraday losses on Friday, as encouraging US data boosted Wall Street, and the Aussie has been lead lately by sentiment following the lead of equities amid the absence of relevant local data being out these days. The pair got some support these last days from Chinese data, as May PMI came above expected, and positive growth in China surely means a better future for Australia. Next Tuesday, the RBA will have its monthly monetary policy meeting, but the central bank is largely expected to maintain rates at record lows and repeat the wording of its latest statement. More relevant for Aussie, will be Chinese trade balance figures to be out this week and headlines related to the trade war between the country and the US. Technically, the daily chart shows that the pair managed to close above a modestly bullish 20 DMA but also that the 100 DMA crossed below the 200 DMA, both well above the current level. Indicators in the mentioned chart have turned marginally lower within positive levels, indicating that buying interest is still limited. Shorter term, and according to the 4 hours chart, the pair is above a congestion of moving averages, all together in a 15 pips' range, while technical indicators also eased in positive territory, overall offering a neutral stance.

Support levels: 0.7535 0.7505 0.7470

Resistance levels: 0.7590 0.7620 0.7660

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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